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TPR (Teikoku Piston Ring Co., Ltd.) Business Report FY2008
Business Highlights
| Financial Overview | (in millions of JPY) |
| FY2008 | FY2007 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 51,922 | 58,127 | (10.7) | - |
| Operating income | 1,818 | 6,763 | (73.1) | - |
| Ordinary income | 2,245 | 7,137 | (68.5) | - |
| Current net income | 1,103 | 3,884 | (71.6) | - |
| Automotive related product business | ||||
| Sales | 38,422 | 44,834 | (14.3) | -Sales of its core products, piston rings, cylinder liners and valve seats, were relatively favorable in the first half. However, sales decreased substantially in the second half as a result of the US and worldwide decline in automobile sales. |
| Operating income | 1,059 | 5,313 | (80.1) | |
Recent Developments Overseas
<Turkey>
-The Company plans to make Federal-Mogul TP Liner Europe Otomotiv Limited Sirketi, its consolidated subsidiary by acquiring additional shares of the company, which is based in Istanbul, Turkey. Federal-Mogul TP Liner Europe Otomotiv Limited Sirketi engages in the manufacturing and sale of automotive cylinder liners. The Company currently holds a 49.9% stake (8,982 shares) in the Turkish entity through its wholly-owned subsidiary Teikoku Europe GmbH. The Company will purchase 18 shares of Federal-Mogul TP Liner Europe Otomotiv Limited Sirketi, for 9,000 Turkish lira, from its joint venture partner Federal-Mogul Investment Limited, to eventually secure a 50.0% stake (9,000 shares). (From a press release on May 9, 2008)
<Vietnam>
-The Company announced that it will build an additional facility to manufacture cylinder liners in the premises of its subsidiary TPR Vietnam Co., Ltd. (TPRV).
| Earnings Forecast for the FY2009 | (in millions of JPY) |
| FY2008 | FY2009 | Year-on-Year Decrease (%) | |
| Sales | 51,920 | 42,000 | (19.1) |
| Capital investment | 4,650 | 2,750 | (40.9) |
| Capital Investment Plan | (in millions of JPY) |
| Rings | Liners | Others | Total | Remarks | |
| Japan | 850 | 330 | 240 | 1,420 | Investment in experiment and research （430） |
| Overseas | 10 | 1,230 | 90 | 1330 | Vietnamese base, others |
| Total | 860 | 1,560 | 330 | 2,750 |
R&D
| R&D Expenditure | (in millions of JPY) |
| FY2008 | FY2007 | FY2006 | |
| Overall | 1,871 | 1,771 | 1,667 |
R&D Activities
Automotive product business
-Engine components
1) Piston rings
-Development of super low friction rings (to improve power output and fuel economy)
-Development of thin, highly-functional oil rings (to improve durability)
-To build a production line that achieves reducing the production costs of piston rings (to reduce cost)
2) Cylinder liners
-Development of super thin, light-weight and highly thermal-conductive liners (to improve power output and fuel economy)
3) Valve seats
-Development of highly abrasion-resistant materials used in valve seats (In response to the use of alternative fuels)
-Other products
1) Aluminum products: Development of new casting method for aluminum wheels used on motorcycles and installing the facilities
to handle them.
2) Sintered mechanical parts: Development of processing method that improves the accuracy and enhance the strength of shock absorb er, and coupling components
Improvement in R&D infrastructure
-Improvement and expansion of facilities for evaluating the function of each part as well as the performance of each part when mounted on engines
-Working on building a simulation system
-Efforts to develop a support system to assist in developing designs (Piston rings)
Investment Activities
R&D
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